Index:1. Introduction.2. Comparative analysis of the formal organizational structure of the S&F Company with other organizational structures.3. Impact of informal culture on formal structure.4. Role of power and politics.5. Recommendation.Introduction: Faced with a technological revolution, the teleshopping and mail order industry must develop new and more convenient ways for its customers to purchase their goods. In the last six months the Smith & Falmouth Company has launched an e-tailing division: Smith & Falmouth On-line. This division is crucial to S&F's growth strategy over the next three years. Organizational structure refers to the division of labor as well as the patterns of coordination, communication, work flow, and formal power that direct organizational activities. An organizational structure reflects the organization's culture and power relations (McShane, 2002). Comparative analysis of S&F Company's formal organizational structure with other organizational structures: S&F Company's current organizational structure is a formal hierarchy mixed with limited informal communication between teams. In a hierarchical structure, legitimate power is given to individuals who then use this power to direct work processes and allocate resources. There is direct supervision within the groups. The corporate structure here is hierarchical, where the chain of command flows downwards. This structure is different from other structures such as complete informal communication and standardization because they are less rigid in processes. Many organizations seek to improve the quality and consistency of a product or service by standardizing work activities through work descriptions and procedures. Coordinate standardization work that requires simple and routine tasks, but is not effective in complex and ambiguous situations. Furthermore, informal communication is a coordination mechanism in all organizations. It involves sharing information about each other's tasks and forming common mental models so that employees synchronize work activities using the same mental road map (McShane, 2002). Impact of Informal Culture on Formal Structure Informal communication allows for considerable flexibility because employees convey a large volume of information through face-to-face communication and other media-rich channels, but it can be time-consuming. Consequently, as organizations grow, they develop a second coordination mechanism in the form of a formal hierarchy. Formal hierarchy has traditionally been applauded as an optimal coordination mechanism for large organizations ( McShane, 2002 ). To achieve S&F's goal of becoming a leader in online sales channels and becoming a profitable unit, management must recognize the organizational structure, evaluate the current situation and work together to enable innovative results. Within large organizations there is an informal culture that influences the